How to hmo a property

What is an HMO?

A House in Multiple Occupation (HMO) is a specific type of residential property that is rented out to a number of people who are not all from the same family or household, but who share common facilities such as a kitchen, bathroom, or toilet. This definition is crucial because it dictates when certain regulations and licensing requirements come into play. Examples include student houses, shared flats, and bedsits.

Why are HMOs Regulated?

The regulation of HMOs is primarily driven by the need to ensure the safety, health, and well-being of tenants. Properties rented to multiple, unrelated individuals often face higher risks related to fire safety, overcrowding, and the standard of amenities. Councils use licensing and regulations to set minimum standards for these properties, ensuring they are safe and habitable environments.

Types of HMOs and Licensing

There are different types of HMOs, and the licensing requirements can vary:

• Small HMOs: Typically involve 3 or 4 tenants from different households. These may not always require a license unless specific local schemes are in place.
• Large HMOs: Generally defined as properties rented out to 5 or more people who form more than one household and share amenities. These often fall under mandatory licensing schemes.

Mandatory Licensing: In England and Wales, any HMO that is occupied by five or more tenants who form more than one household and share toilet, bathroom, or kitchen facilities is subject to mandatory licensing. This means landlords must obtain a license from the local housing authority before letting the property. Similar regulations exist in Scotland and Northern Ireland, with local councils playing a key role.

Steps to Converting or Operating an HMO

If you are considering converting a property into an HMO or are already operating one, you need to be aware of the necessary steps:

1. Planning Permission

Depending on your local authority's policies, you may need to apply for planning permission to change the use of a property to an HMO. This is particularly common in areas with high concentrations of HMOs or where local councils have Article 4 Directions in place, which restrict permitted development rights for changes of use.

2. Building Regulations

HMOs must comply with relevant building regulations, especially concerning fire safety. This includes:

• Fire Doors: Often required on all doors within the HMO and on the entrance door.
• Fire Detection: Installation of mains-powered smoke alarms on each level and heat detectors in kitchens.
• Emergency Lighting: May be required in communal areas.
• Means of Escape: Ensuring clear and safe escape routes.

These regulations aim to prevent fires and ensure tenants can escape safely if one occurs.

3. HMO Licensing

This is a critical step. You must contact your local council's housing department to understand their specific HMO licensing requirements. Even if your property doesn't fall under mandatory licensing, the council may operate an additional licensing scheme or selective licensing scheme for certain areas or types of properties.

The licensing process typically involves:

• Application Form: Completing a detailed application provided by the council.
• Property Inspection: The council will inspect the property to ensure it meets the required standards.
• Management & Ownership Details: Providing information about the landlord, agents, and managing agents.
• Fees: Paying the required licensing fees, which can vary significantly between councils.

4. Minimum Standards and Amenities

Councils set minimum standards for HMOs, which typically cover:

• Room Sizes: Minimum floor areas for bedrooms and common rooms. For example, a single bedroom might need to be at least 6.51 square meters, and a double bedroom at least 10.22 square meters. These figures can vary by council.
• Kitchen Facilities: Adequate number of hobs, ovens, sinks, and refrigeration space per number of tenants.
• Bathroom Facilities: Sufficient number of toilets, washbasins, and showers/baths relative to the number of tenants. A common ratio might be one toilet for every 4-5 tenants.
• Storage: Adequate storage for refuse and recycling.
• Ventilation: Proper ventilation in all rooms.
• Heating: Adequate heating systems.

5. Landlord Responsibilities

Landlords of HMOs have specific responsibilities, including:

• Ensuring the property is safe and well-maintained.
• Complying with all licensing conditions.
• Providing tenants with necessary information.
• Managing waste effectively.
• Keeping gas and electrical installations safe.

Consequences of Non-Compliance

Operating an unlicensed HMO or failing to meet the required standards can lead to severe penalties. These can include:

• Significant fines, potentially running into tens of thousands of pounds.
• Enforcement action by the local authority, which might involve carrying out works and charging the landlord.
• Prohibition orders preventing the property from being used as an HMO.
• Prosecution.
• Difficulty in obtaining future licenses.

Where to Find More Information

The best source of information for HMO regulations is your local council's housing or private sector letting team. They will have specific guidance, application forms, and details on their licensing schemes. National government websites also provide general guidance on HMO management and regulations.